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Formula One negotiates for Singapore GP, confirms Belgium

Last year's Singapore Grand Prix was a big success, but neither the Singapore GP promoter or Formula One have been able to come to an agreement on whether it will continue. Photo by LAT PHOTOGRAPHIC

There is confusion over the future of the state-funded Formula One Singapore Grand Prix, the current contract for which will expire after this year's floodlit race on the Marina Bay street circuit in September.

This race is believed to be among the most expensive for the promoter on the fixture list. The government of the island nation always maintained that it had to be commercially viable, but never denied media reports that the original deal agreed to sanctioning fees for Formula One rising from $35 million in 2008 to $42 million last year. Last week Michael Roche, the executive director of the event promoter, Singapore GP, told local media that negotiations over a five-year extension of the contract, through 2017, were in difficulty because Formula One was proposing even higher fees.

Then the commercial rights-holder, Bernie Ecclestone, told the Today newspaper that a new deal had been done, adding: “Everything that was in the way has been cleared. I'm very happy this is out of the way, because Singapore has been good for Formula One, and the night race has been equally good for Singapore.”

However, Singapore GP issued an immediate denial, saying in a statement: “Further to media reports on [July 11, 2012], SGP wishes to clarify that talks on continuing the Singapore Grand Prix for a second term are still ongoing. What is currently on offer from Formula One is insufficient for us to commit to a full five-year extension.

Negotiations have been ongoing for almost a year. Singapore GP has received a formal renewal notice from Formula One Administration to confirm their wish to continue running the night race for five more years.

Since then, Singapore GP has been in talks to cement terms that offer commercial viability for the full five years. We remain hopeful of reaching an outcome that is mutually beneficial to all parties.”

Meanwhile, the Singapore Tourism Board, which has also confirmed in a media statement that negotiations are ongoing, has arranged three road shows to drum up public interest in this year's event, all backed by the title sponsor, the SingTel telecommunications company. The first has already been held on the city-state's Bishan Open Green and will be followed by others in the Jurong Central Park and in East Coast Park.

Formula One has also reached an agreement with the regional government of Wallonia, Belgium, that guarantees the “classic” Formula One race on the Spa-Francorchamps road course through 2015, apparently on terms favorable to the publicly owned promoter.

The deal serves to confirm that a proposal for the Belgian Grand Prix at Spa to alternate with a revived French Grand Prix at Paul Ricard has been put on hold, following the change of national government in Paris.

Finance minister Jean-Claude Marcourt told RTBF, the national broadcaster: “We have been able to negotiate a contract extension for 2013, 2014 and 2015. What I wanted to do was to reduce the size of the expenditure budget for the Walloon region, and I would say that we have accomplished that mission.

“There was no way we could continue to lose as much money as we have in previous years. This was the mandate I gave to Étienne Davignon [the chairman of Spa Grand Prix, the event promoter]. This event is an expense, but it is not as much [as before]. What it will do is increase the attractiveness of Belgium.

“The negotiations were long, but not difficult. We had a problem for a while when France wanted an alternation. They said they were open because it was an opportunity. [Formula One CEO Bernie] Ecclestone is someone who is extremely difficult to deal with, but he was very respectful of the commitments made to us.”